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The Graph Shown Displays a Market with an Externality

Question 36

Multiple Choice

The graph shown displays a market with an externality. The graph shown displays a market with an externality.   Which of the following statements is true?The efficient quantity is 6 units.This shows a negative production externality.The size of the externality is $4 per unit. A) I and III only B) II only C) I only D) I, II, and III Which of the following statements is true?The efficient quantity is 6 units.This shows a negative production externality.The size of the externality is $4 per unit.


A) I and III only
B) II only
C) I only
D) I, II, and III

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